The Bank of Mum and Dad to fund record number of property deals in 2023

Given the prevalence of the bank of Mum and Dad in property transactions, advice is increasingly sought as to how such purchases should be structured from a tax and asset protection perspective. Advising on these matters will likely involve a combination of private client, tax and family law expertise. 

There is a broad array of options for parents to assist their children, including: buying a second property in the parents’ names; purchasing the property jointly with their child; giving or lending the funds; and using a trust.

There is often a temptation to enter into informal arrangements, but it is vital that all parties seek independent legal and financial advice before an offer is made on a property.